Collaboration in
a supply chain helps different members of the chain match demand with supply more
effectively than they could alone. Although collaboration promises mutual benefits to the
members, those benefits are rarely realised due to differences in interest among them.
This paper argues that managerial inertia manifested in local perspective and
opportunistic behaviour of chain members contribute to mismatch between supply and demand.
Identifying the managerial inertia of various chain members that prevents them from
gaining mutual benefits, and studying the underlying reasons for self-interested behaviour
are very important research issues. A collaborative supply chain is proposed to
simultaneously consider information sharing incentive alignment in consonant with
appropriate performance measures and integrated policies as initiatives to mitigate the
detrimental effects of managerial inertia on chain performance.